The Cost Plus Contractor Agreement is particularly suited for complex construction projects in Singapore where the exact scope or costs cannot be accurately predetermined. This contract type provides flexibility while maintaining cost transparency, making it ideal for projects with uncertain specifications or where rapid commencement is required. The agreement must comply with Singapore's robust construction law framework, including SOPA and BCA regulations. It typically includes detailed provisions for cost verification, payment procedures, quality control, and project management protocols, while incorporating standard industry practices and local regulatory requirements.
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1. Parties: Identification of the Owner/Principal and the Contractor, including full legal names and addresses
2. Background: Context of the agreement, project overview, and basis for engaging in a cost-plus arrangement
3. Definitions: Key terms used throughout the agreement, including 'Cost', 'Fee', 'Works', etc.
4. Scope of Works: Detailed description of the construction/project works to be performed
5. Cost Structure: Definition of allowable costs, excluded costs, and calculation methodology
6. Fee Structure: Contractor's fee calculation, typically as percentage markup or fixed fee
7. Payment Terms: Payment schedule, verification process, and invoicing requirements
8. Duration and Timeline: Project schedule, milestones, and completion dates
9. Contractor Obligations: Key responsibilities and duties of the contractor
10. Principal Obligations: Key responsibilities and duties of the principal/owner
1. Performance Security: Bond requirements and guarantees for high-value projects or when required by financing arrangements
2. Liquidated Damages: Predetermined damages for specific breaches, applicable when specific monetary losses can be predicted
3. Value Engineering: Process for cost optimization suggestions in complex projects
4. Acceleration: Provisions for speeding up work when project timeline flexibility might be needed
1. Schedule of Rates: Detailed breakdown of labor, equipment, and material rates
2. Project Specifications: Technical specifications and requirements
3. Bill of Quantities: Estimated quantities of materials and work items
4. Insurance Requirements: Detailed insurance coverage requirements and limits
5. Project Timeline: Detailed project schedule and milestones
6. Quality Assurance Plan: Quality control procedures and requirements
7. Safety Requirements: Safety protocols and procedures
8. Form of Payment Application: Template for monthly payment applications
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